'No sugar shortage': ISMA says India has enough stocks, prices to cool down soon
The Indian Sugar Mills Association (ISMA) has dismissed concerns regarding a sugar shortage, citing strong domestic stocks and production estimates. Despite a recent retail price spike, the industry expects prices to stabilize as new supplies arrive.
Why it matters
Food security and commodity price stability are critical economic indicators for India's domestic market and inflation management.
India does not have a sugar shortage, industry body ISMA said on Monday, soothing concerns over the sweetner's supplies amid a recent rise in retail prices. The industry body also expects sugar prices to come down in the comingIndian Sugar Mills Association president Niraj Shirgaokar said that the recent price rise was mainly due to speculative stocking and lower production caused by weather-related issues. “India does not have a sugar shortage and the supply situation is fundamentally strong,” Shirgaokar said, adding that the country has sufficient stocks and supplies to meet festival demand.The assessment comes after sugar prices rose 24% in a month to Rs 56-60 per kg in both retail and wholesale markets, prompting the Centre on August 20 to allow duty-free imports of up to 1 million tonnes of raw sugar.‘No panic situation’The National Federation of Cooperative Sugar Factories (NFCSF) has also maintained that domestic supplies remain adequate.…
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